Transparent management

Although it is not subject to the control and auditing rules in force in Brazil and Paraguay because of its binational legal position, the power plant has adjusted to the Sarbanes-Oxley Act (SOX), implemented the binational electronic trading floor, and adopted the Enterprise Resource Planning (ERP) from SAP.

The Sarbanes-Oxley Act (SOX) is a sort of fiscal responsibility law that regulates corporate governance standards in open capital companies, promoting reforms and enhancing the level of reporting, transparency, consistency, and business ethics.

It is mandatory for all companies and their affiliates trading their stocks at North-American stock exchange markets. Itaipu's Brazilian side is part of the Eletrobrás group whose stocks are traded at the New York Stock Exchange, and is therefore subject to SOX.

A system of integrated company financial procedures management, ERP-SAP has allowed Itaipu to optimize and integrate actions, processes, and the management of its financial information. By having all its systems interconnected, the company has managed to decrease paperwork and costs.

To further enhance its financial management transparency, Itaipu has implemented an Internet-based reverse auction system (the winner is the supplier offering the lowest price). It is the only case of binational trading floor in the world. The system is entirely online, in Portuguese and Spanish, and in three currencies: real, guarani and dollar. In addition, the program reconciles the business hours and holidays of both countries.

The binational trading floor has become a case study for federal government agencies currently developing a governmental purchase system for the Southern Common Market. A work group from the Ministry of Planning has been adjusting the model to turn it into an international electronic trading floor.